Answer to Question #160366 in Management for Prabhdeep

Question

1.Name and describe the 3 critical elements media planners must consider in setting specific media objectives?(please elaborate in detail)

2.Differentiate between consumer promotions and trade promotions?(please give at least 10 points for difference)

Answer 1

1. a)Reach—How many different members of the target audience can be exposed to the message in a particular time frame. Different or unduplicated audiences are those that have at least one chance of being exposed to a message. The media planner calculates the reach of a media schedule according to research estimates that forecast the unduplicated audience.

b)Frequency—The rate of exposure. To estimate the frequency of a schedule,planners use two methods: average frequency and frequency distribution. Average frequency is calculated by dividing gross rating points by the reach estimate or by dividing gross audience impressions by unduplicated impressions. Average frequency can give the planner a distorted idea of the plan’s performance, so most planners tend to calculate frequency distribution whenever possible. The frequency distribution method is more revealing, and thus more valuable, than the average frequency method of reporting repetition. Another concept, effective frequency, essentially combines the reach and the frequency elements into one factor, and the idea is that you add frequency to reach until you get to the level where people respond.

c)Exposure and GRPs—In practice, media planners use gross impressions as a primary measure for total impressions. Gross impressions are the sum of the audiences of all the media vehicles used during a certain span of time. It’s called“gross” because the planner has made no attempt to calculate how many different people were in the audience or whether the same person saw the same ad several times, meaning it ignores duplication of exposure. To get the sum of gross impressions, the media planner finds the audience figure for each vehicle used,multiplies that figure by the number of times the vehicle is used, and adds the vehicle figures. To avoid the huge numbers, media planners convert impressions to gross rating points (GRPs) in order to compare the efficiency of different media schedules.

2

a)Trade promotions target retailers while consumer promotions are policies aimed at consumers.

b) Consumer promotions, are incentives directed towards the end user, while trade promotions aim at building relationships between manufacturers and retailers.

c)consumer promotions, on the other hand, are strategies designed to engage consumers in buying the products. Trade promotions encourage sales of products that are to be resold, therefore, involve a business-to- business relationship. Free trials, samples, discounts, coupons, sweepstakes and contests all serve to induce consumers to buy the products or the services of an individual company.

d) Trade allowances are incentives used to encourage a retailer to stock a product such as cash discounts or promotional incentives whereas in consumer promotions discounts are sometimes given to customers who buy in large quantities.

e)Dealer loaders are incentives given to a dealer to display a product, such as in-store displays, premiums, or rebates whereas in trade promotions Premiums are promotional items that can be received for a small fee when redeeming the proof of purchase.

f) In trade promotions Trade allowances are incentives used to encourage a retailer to stock a product such as cash discounts or promotional incentives whereas in consumer promotions discounts are sometimes given to customers who buy in large quantities.

g) Consumer promotions are used by retailers to induce customers to buy products or services whereas trade promotions are used by manufacturers and wholesalers to get their business buyers to purchase products for resale.

h) Dealer loaders are incentives given to a dealer to display a product, such as in-store displays, premiums, or rebates whereas in trade promotions Premiums are promotional items that can be received for a small fee when redeeming the proof of purchase.

i) In consumer promotions premiums are promotional items that can be received for a small fee when redeeming the proof of purchase whereas in trade promotions, dealer loaders are incentives given to a dealer to display a product, such as in-store displays, premiums, or rebates.

j) In consumer promotions discounts are sometimes given to customers who buy in large quantities whereas in trade promotions trade allowances are incentives used to encourage a retailer to stock a product such as cash discounts or promotional incentives